Case Digest (G.R. No. L-9637)
Facts:
The case involves the American Bible Society (plaintiff-appellant) and the City of Manila (defendant-appellee). The American Bible Society is a foreign, non-stock, non-profit religious corporation that has been operating in the Philippines since November 1898, with its principal office located at 636 Isaac Peral, Manila. The Society has been engaged in the distribution and sale of Bibles and gospel portions throughout the Philippines, except during the Japanese occupation. On May 29, 1953, the acting City Treasurer of Manila informed the Society that it was conducting business as a general merchandise dealer since November 1945 without the necessary Mayor's permit and municipal license, in violation of several municipal ordinances. The City Treasurer demanded payment of P5,821.45 for the required fees covering the period from the fourth quarter of 1945 to the second quarter of 1953. The Society protested this requirement but was compelled to pay the amount under protest o...
Case Digest (G.R. No. L-9637)
Facts:
Parties Involved:
- Plaintiff-Appellant: American Bible Society, a foreign, non-stock, non-profit, religious, missionary corporation registered and operating in the Philippines since 1898.
- Defendant-Appellee: City of Manila, a municipal corporation governed by Republic Act No. 409 (Revised Charter of the City of Manila).
Nature of Plaintiff's Operations:
- The American Bible Society has been distributing and selling Bibles, New Testaments, and gospel portions in the Philippines, including translations into local dialects, except during the Japanese occupation.
- The Society operates through its Philippine agency, with its principal office in Manila.
Dispute with the City of Manila:
- On May 29, 1953, the City Treasurer of Manila informed the Society that it was conducting business without the necessary Mayor’s permit and municipal license, violating Ordinance No. 3000 (as amended) and Ordinances Nos. 2529, 3028, and 3364.
- The City Treasurer demanded payment of P5,821.45 for permit and license fees, covering the period from the 4th quarter of 1945 to the 2nd quarter of 1953.
- The Society paid the amount under protest on October 24, 1953, and filed a lawsuit challenging the legality and constitutionality of the ordinances.
Stipulation of Facts:
- The parties agreed on the sales figures of the Society from 1945 to 1953, showing significant sales of Bibles and religious materials.
- The Society argued that it did not make a profit from these sales, as the prices were often below cost, and it relied on remittances from its New York office and contributions from churches.
Defendant's Position:
- The City of Manila maintained that the ordinances were validly enacted under the Revised Administrative Code and the Revised Charter of the City of Manila.
- The City argued that the Society’s sales of Bibles constituted a business activity subject to municipal taxes and licensing.
Issue:
Constitutionality of the Ordinances:
- Whether Ordinances Nos. 3000 (as amended), 2529, 3028, and 3364 are constitutional and valid.
- Specifically, whether these ordinances violate the constitutional guarantee of religious freedom under Article III, Section 1(7) of the 1935 Constitution.
Applicability of the Ordinances:
- Whether the ordinances apply to the American Bible Society’s distribution and sale of Bibles, given its religious and non-profit nature.
Repeal of the Revised Administrative Code:
- Whether Section 2444(m-2) of the Revised Administrative Code, under which the ordinances were enacted, was repealed by Section 18 of Republic Act No. 409 (Revised Charter of Manila).
Approval by the President:
- Whether the ordinances, particularly those imposing percentage taxes based on gross sales, required approval by the President of the Philippines to be valid.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Conclusion:
The Supreme Court reversed the lower court’s decision and ordered the City of Manila to return the P5,891.45 collected from the American Bible Society. The Court held that the ordinances were inapplicable to the Society’s religious activities and that their enforcement would violate the constitutional guarantee of religious freedom.